LGI HomesLGIH +2.27%68 Net Debt Paydown Yield % is -10.73% as of Jul. 11, 2026. GuruFocus rates LGIH with a GF Score™ of 68/100 and a GF Value™ of $71.81 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 89 Homebuilding & Construction companies, LGI Homes ranks worse than 70.79% on this metric.
Net Debt Paydown Yield % is a metric that evaluates the total amount of debt a company has paid in relation to its market capitalization. It is a measure of a company's willingness and ability to reduce its debt.
As of today, LGI Homes's Net Debt Paydown Yield % was -10.73%.
LGI Homes (NAS:LGIH) Net Debt Paydown Yield % Explanation
Net Debt Paydown Yield % is the change in average of four quarters of company's total debt over a company's market cap. Assuming the total value of a company remains that same, shareholder value is increased as debt is reduced. In other words, it is a measure of the willingness and ability of a firm's management to pay down debt. Companies that have high debt paydown yields indicate that they are more aggressive with paying down debt.
In the calculation of Net Debt Paydown Yield %, we use the reductions of TTM average total debt one-year-ago and TTM average total debt at present, divided by its Market Cap.
LGI Homes Net Debt Paydown Yield % Historical Data
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The historical data trend for LGI Homes's Net Debt Paydown Yield % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LGIH vs DFH, HOV, BZH: Net Debt Paydown Yield % Comparison
For the Residential Construction subindustry, LGI Homes's Net Debt Paydown Yield %, along with its competitors' market caps and Net Debt Paydown Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LGI Homes Net Debt Paydown Yield % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Net Debt Paydown Yield % distribution charts can be found below:
* The bar in red indicates where LGI Homes's Net Debt Paydown Yield % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* All the data are calculated by TTM values. Note that if a companies is traded in several exchanges, then we calculate the company level data for Net Debt Paydown Yield % using the primary share class stock data. The calculation result in definition page is for demonstration purpose only, and it's showing the share class level data. Therefore, the numbers in the calculation may differ from elsewhere if the stock is not a primary share.
What does a Net Debt Paydown Yield % of -10.73% mean?
LGI Homes (LGIH) has a Net Debt Paydown Yield % of -10.73% as of Jul. 11, 2026. Net Debt Paydown Yield is a metric that evaluates the total amount of debt a company has paid in relation to its market capitalization. This metric provides insight into a company's willingness and ability to reduce its debt using free cash flow. View historical data on LGI Homes and its competitors. According to the industry distribution chart, LGI Homes ranks #63 out of 89 companies in the Homebuilding & Construction industry, placing it in the top 70.8%.
Is LGI Homes' Net Debt Paydown Yield % too high?
LGI Homes' current Net Debt Paydown Yield % is -10.73%. Based on the distribution chart, LGI Homes ranks #63 out of 89 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, LGI Homes has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGI Homes' Net Debt Paydown Yield % compare to DFH and HOV?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #63 out of 89 companies for Net Debt Paydown Yield %. This places LGI Homes in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Debt Paydown Yield % for a Homebuilding & Construction company?
A good Net Debt Paydown Yield % depends on the Homebuilding & Construction industry context. However, Net Debt Paydown Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Debt Paydown Yield % mean?
A high Net Debt Paydown Yield % can signal that a stock is expensive relative to its fundamentals. Net Debt Paydown Yield is a metric that evaluates the total amount of debt a company has paid in relation to its market capitalization. This metric provides insight into a company's willingness and ability to reduce its debt using free cash flow. View historical data on LGI Homes and its competitors. LGI Homes's current Net Debt Paydown Yield % is -10.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LGI Homes stock overvalued right now?
Based on GuruFocus' analysis, LGI Homes (LGIH) is currently considered Modestly Undervalued. The stock's GF Value™ is $71.81, compared to a current price of $59.45 — trading 17.2% below its estimated fair value. The current Net Debt Paydown Yield % is -10.73%. LGI Homes' overall GF Score™ is 68/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Debt Paydown Yield % calculated?
Net Debt Paydown Yield % is calculated from a company's financial statements. For LGI Homes (LGIH), the current Net Debt Paydown Yield % is -10.73% as of Jul. 11, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LGI Homes (LGIH) Overvalued in 2026?
Based on GuruFocus' analysis, LGI Homes stock appears to be undervalued.
The current stock price of $59.45 is trading 17.2% below its estimated GF Value™ of $71.81.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
Net Debt Paydown Yield %: -10.73%
GF Value™: $71.81 vs. price of $59.45 (17.2% below fair value)
No single metric tells the full story. See the LGIH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LGI Homes Inc is engaged in the design, construction, and sale of new homes in markets. The company's current product offerings include entry-level homes, including both detached homes and townhomes, and move-up homes sold, which are sold under the LGI Homes brand, and luxury series homes, which are sold under the Terrata Homes brand. It offers a set number of floor plans in each community with features that include upgrades, such as granite countertops, appliances, and ceramic tile flooring. The company has seven operating segments: West, Northwest, Central, Midwest, Florida, Southeast, and Mid-Atlantic. The majority of the revenue is generated from the Central division segment.
68GF Score
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